Unit One International Trade

　　(一)基本要求

　　了解: Definition and Importance, Barriers to International Trade

　　熟悉: Differences between International Trade and Domestic

　　Trade, WTO

　　掌握: Risks in International Trade, Steps of International Trade

　　(二)考试内容：

　　1. Definition and Importance

　　2. Differences between International Trade and Domestic Trade

　　3. Risks in International Trade

　　4. World Trade Organization

　　5. Barriers to International Trade

　　6. Steps of International Trade

　　2. Differences between International Trade and Domestic Trade

　　International trade is typically more costly(成本高) than domestic trade.(reason: additional costs such as tariffs, time costs due to board delays and costs associated with country differences such as language, the legal system, culture. )

　　The factors of production( 生产要素)are typically more mobile (流动)within a country than across countries. (International trade is mostly restricted to trade in goods and service).

　　International trade is also a branch of economics, which together with international finance, forms the large branch of international economics.

　　3. Risks in International Trade

　　Economic risks

　　(1)insolvency (破产)of the buyer; (2)the failure of the buyer to pay the amount; (3)non-acceptance;(4) exchange rate, etc.

　　Political risks

　　(1)cancellation or non-renewal of export or import licenses ; (2)war risks; (3)expropriation or confiscation of the importer’s company; (4)risk of the imposition of an import ban (禁止进口)after the shipment of the goods;(5) transfer risk—imposition of exchange controls (外汇管制) by the importer’s country or foreign currency shortages; (6)influence of political parties in importer’s company.

　　4.World Trade Organization

　　WTO definition(世贸组织)

　　It is best described as an umbrella organization (伞式组织)under which the agreements that came out of the Uruguay Round of multilateral trade negotiations(乌拉圭多边贸易谈判) are gathered.

　　WTO functions

　　to implement, administer, and carry out WTO Agreement and it annexes;

　　to act as a forum for ongoing multilateral trade negotiations;

　　to serve as a tribunal for resolving disputes;

　　to review (评价、回顾)the trade policies and practices of member states.

　　5. Steps (步骤)of International Trade

　　Starting with market research

　　Seeking customers

　　Contact each other by sending inquiries

　　Status inquiry(询价状况)

　　Quotations or offers;acceptance or non acceptance

　　Order; contract

　　Obtaining import/export license; opening L/C ，receiving L/C

　　Preparation of goods by the seller

　　Inspection or survey of goods

　　Reserving shipping space(订舱)

　　Effecting insurance

　　Customs clearance

　　Shipping advice

　　Negotiation of export documents under L/C by the beneficiary

　　Redemption of documents (赎单)under L/C

　　Customs clearance for import

　　Delivery of goods

　　Lodging and settling claims (索理赔)(if any)